Wednesday, March 7, 2012

LPS home price index: Denver home prices unchanged in December

According to the LPS Home Price Index for December, released today, the average house price in the Denver area were unchanged from December 2010 to December 2011. According to the report, the average home price was $220,000 during December 2011, which was the same as the price recorded during December 2010. The Denver average price was the 11th-highest average price among the 25 cities surveyed. In Denver, the average price peaked during Jun of 2007.

Nationally, the average house price fell 3.9 percent form December 2010 to December 2011, dropping to $205,000. Nationally, the average house price peaked during June of 2006.

Denver's home price was unchanged, and only four metro areas reported gains, including Honolulu, Miami, Minneapolis and Pittsburgh. All other areas reported declines.

According to the LPs press release:

"'Despite the broad picture of home price declines following the bubble, prices have not been consistently declining for all MSAs in the country. About one-fifth (89) of all the MSAs that LPS covers has seen average home prices increase since December 2008,' commented Dosaj. 'For 90 percent of these MSAs, prices rose only if the lowest-priced homes in their markets rose. This correlation did not necessarily hold for higher-priced homes in those areas. Unfortunately, the MSAs that have seen price increases since December 2008 are generally relatively small; Boston and Pittsburgh are exceptions.'"

This report shows few surprises when compared to other home price indices such as the FHFA's report and the Case-Shiller index. The Denver area continues to show more stability in prices than most metro areas surveyed and continues to show smaller declines in prices than the nation as a whole. A lack of any change year over year is similar to the price changes shown by the Case-Shiller index and the Corelogic index. In both, prices are largely flat.

See here for the home price archives.